Jon Kyl: “about a month ago, the Administrative Office of the U.S. Courts released figures on nationwide bankruptcy filings for…”

“about a month ago, the Administrative Office of the U.S. Courts released figures on nationwide bankruptcy filings for the 12-month period ending June 30. The figures clearly illustrate what has so many of us concerned--that is, that bankruptcy filings are becoming epidemic. Filings for the 12-month period ending on June 30 totaled 1,429,451-- an all-time high. Personal bankruptcy filings increased 9.2 percent from the same period in 1997. Unlike other kinds of epidemics, this is one that can be avoided in many instances if credit is used wisely and people do not overextend themselves in the first place. Certainly, extraordinary circumstances can strike any family, which is why it is important to preserve access to bankruptcy relief. No one disputes that there should be an opportunity to seek relief and a fresh start when truly extraordinary circumstances strike--for example, when families are torn apart by divorce or ill health. I suspect that creditors are more than willing to work with someone when such tragedy strikes to help them through tough times. But there is growing evidence, Madam President, that more and more people who file for relief under Chapter 7 actually have the ability to pay back some, or even all, of what they owe.”